Denmark is ready to step up its currency interventions to stampout any lingering speculation the central bank may be unable todefend its euro peg.
“We have plenty of kroner,” Karsten Biltoft, head ofcommunications at the central bank in Copenhagen, said in a phoneinterview. “We have the necessary tools in terms of interest-ratechanges and interventions, and we have a sufficient supply ofDanish kroner.”
The comments follow the central bank's second rate cut in lessthan a week, with Governor Lars Rohde lowering the benchmarkdeposit rate to a record minus 0.35 percent today. That was morethan expected by most economists surveyed by Bloomberg and followeda 15 basis-point cut on Monday. The easing comes as the EuropeanCentral Bank (ECB) unveils an historic bond-purchase program.
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